Shareholder advises walking away from cut-price offer
Somerfield shareholders are urging the retailer not to accept any cut-price bids from the consortia circling the company.

Shareholder State Street Global Advisors, which owns 3 per cent of the retailer, has urged management to walk away from a deal, rather than sell the retailer too cheap. However, the group hinted in press reports that the highest market expectations are unlikely to be offered. Analyst expectations value the retailer at between 210p and 220p. Initial indicative offers were about 205p, which values the retailer at about£1.1 billion.

However, the retailer appears to have grown its market share. In June, it announced operating profits up 63 per cent to£66.4 million. Profit before tax for the 53 weeks to April 30 rose 63 per cent to£53.1 million.

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